Week 1 Flashcards
Debit transactions always on what side?
left of the journal entry
Credit Transactions always on what side of the journal ?
right of the journal entry
Name 5 types of accounts
Assets, Liabilities, Equity, Revenue, Expenses
What is the basic accounting equation?
Assets = Liabilities + Equity
What is the expanded accounting equation ?
Assets + Expenses = Liabilities+ Revenue + Equity
What is the acronym to use for what accounts fall on what side of the T chart
DEA / LER
General Journal is ?
individual transactions kept in a book
General Ledger is ?
the accumulation of all the transactions broken down into groupings
I sold equipment for cash. What accounts
Equipment gets credited, cash gets debited
What accounts would you use for customer buys product with credit.
Accounts Receivable would get debited, Revenue would get credited
Name the 4 financial statements
The income statement, The balance sheet, cash flow statement, the statement of equity
Define Deferrals
transactions that have been paid for but services not completed
Accruals
future payments or expenses (rent paid for 6 months)
Tax Adjustments
tax credits owed to be paid from previous years
An adjusted trail balance
listing of all accounts with final ending balance after all the adjustments have been factored in
What statement gives you revenue and expenses
Income statement
What statement gives you owners capital change over time ?
the statement of equity
What statement gives you assets, liabilities and equity
the balance sheet
What statement gives you inflow and outflow of cash
the statement of cash flow
What account should be $0 after ending an accounting period
Revenue
Performs a service and paid right away. Invoice or Receipt
a sale receipt
Performs a service and will be paid at a later date
an invoice
Customer returned an item and you offer a credit
Credit memo
True or False. You need an income statement to complete a statement of equity
true
